Mortgage rates were on the rise for the second consecutive week, causing some borrowers to show reluctance. Total mortgage application activity—which reflects both refinancing and home purchase demand—dropped 2.6 percent last week, the Mortgage Bankers Association reported Wednesday. Nevertheless, mortgage volume remains 6.6 percent higher than the same week a year ago.
“Rates moved higher last week driven by concerns over a weaker U.S. dollar, signs of more robust growth and rising rates abroad, and moderately strong fourth-quarter domestic growth,” says MBA economist Joel Kan.

Broken out, applications to refinance a home loan dropped 3 percent during the week, but are still 3 percent higher than a year ago. Refinancing applications tend to be more sensitive to rate changes than home buying applications. Applications to buy a home also dropped 3 percent last week, but remain 10 percent higher than a year ago.
The MBA reported that the average 30-year fixed-rate mortgage rate was 4.41 percent last week, the highest level since March. The 15-year fixed rate and the FHA rate were at their highest levels since 2011 and 2013, respectively.

Contract signings on home sales rose slightly in December, reaching their highest level since last March, the National Association of REALTORS® reported Wednesday. NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, moved 0.5 percent higher to a reading of 110.1 last month, 0.5 percent higher than a year ago.
“Another month of modest increases in contract activity is evidence that the housing market has a small trace of momentum at the start of 2018,” says Lawrence Yun, NAR’s chief economist. “Jobs are plentiful, wages are finally climbing, and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search.”
But Yun cautions that these positive indicators won’t necessarily equate to a stronger sales pace in the long run: “Buyers throughout the country continue to be hamstrung by record-low supply levels that are pushing up prices—especially at the lower end of the market.”
The imbalance in supply and demand in housing throughout the country prompted home prices to appreciate 5.8 percent in 2017, which marks the sixth consecutive year of gains at or above 5 percent, NAR reports. Yun does expect price growth to subside in 2018, with some states possibly experiencing a decline due to the changes in the impact of the mortgage interest deduction and state and local deductions under the new tax law.
“In the short term, the larger paychecks most households will see from the tax cuts may give prospective buyers the ability to save for a larger down payment this year, and the healthy labor economy and job market will continue to boost demand,” Yun says. “However, there’s no doubt the nation’s most expensive markets with high property taxes are going to be adversely impacted by the tax law. Just how severe is still uncertain, but with homeownership now less incentivized in the tax code, sellers in the upper end of the market may have to adjust their price expectations if they want to trade down or move to less expensive areas. This could in turn lead to both a decrease in sales and home values.”

Matt is a Hibbing native, and has spent a large potion of his life on the Iron Range. Whether it be friends, family or business acquaintances, he likes spending time with people, and is well connected within the community. In his free time, he thoroughly enjoys sports – both playing and watching them.

Matt is joining Perrella and Associates as a licensed real estate agent, and is also taking on part of the business and office management within the agency. He is very adept at working with people, and is looking forward to helping clients and customers with all their real estate needs. You may contact him by calling Perrella & Associates at (218) 262-5582 or on his cell phone at (218) 295-2240.

Concerns about data security and privacy are deepening as the real estate industry is increasingly being targeted by hackers. As personal and financial information is increasingly transmitted via email and between devices, it’s imperative that real estate professionals protect themselves and their clients from scams or data breaches.
This weekend, on Jan. 28, the National Cyber Security Alliance is observing Data Privacy Day by partnering with leaders in industry, government, and nonprofit sectors to educate businesses about the importance of respecting privacy and protecting personal information.
Read more: Don’t Be a Cybercrime Statistic
According to a J.D. Power and Associates survey, 81 percent of Americans feel they have lost control over the way their personal data is collected. “Companies of all sizes and from all industries are continuously collecting enormous amounts of personal data. Consumers want to know how their personal information is collected and protected and with whom it is shared,” said Russ Schrader, the NCSA’s executive director. “In fact, respecting privacy is not only a protective measure, but also a smart strategy for enabling consumer trust and enhancing reputation and growth.”
As the world becomes increasingly connected and the internet continues to expand, think about the abundance of personal information collected on your devices and what could happen if that information is stolen and used in negative ways.
The NCSA has some tips for being more thoughtful concerning information you collect from clients, protecting that data, and fostering trust within your sphere.
If you collect it, protect it. Personal information is like money. Create a policy for you, agents on your team, or at your brokerage for taking reasonable security measures to protect individuals’ personal information from inappropriate and unauthorized access. This could include the following steps:
Secure your logins. Your usernames and passwords are not enough to protect key accounts like email, banking, and social media, according to the NCSA. Always turn on the strongest authentication tools available, such as biometrics, security keys, or a unique one-time code through an app on your mobile device.
Keep up with updates. Update your security software, web browser, and operating system to have the best defense against viruses, malware, and other online threats.
Be thoughtful with what you share. Consider what you’re posting online and who might see it. Regularly check your privacy and security settings on your social networks.
Secure your devices. Every device should be secured by a password or strong authentication—finger swipe, facial recognition, or other technique. These security measures limit access to authorized users only and protect your information if devices are lost or stolen.
Think before you app. Information about you, such as the games you like to play, your contacts list, where you shop, and your location, has tremendous value. Be thoughtful about who gets that information and understand how it’s collected through apps.
Read more: 9 Ways to Keep Data Secure
Be open and honest about how you gather, use, and share personal information: Clearly communicate your data-use practices and how you manage customers’ privacy. But don’t count on your privacy policy as your only tool to educate clients. Communicate clearly and often what privacy means to you or your brokerage firm, and the steps you take to achieve and maintain consumer privacy and security.
Create a culture that respects data security: Educate agents about their role in privacy, security, and respecting and protecting the personal information of customers.
“Every company must be able to demonstrate how it is protecting data privacy to earn the trust of customers, users, partners and employees. This takes a collaborative, risk-based data privacy practice that aligns with industry best practices, customer demands, and regulatory requirements,” said Michelle Dennedy, vice president and chief privacy officer for Cisco, a partner of the NCSA.
The NCSA has tips on how to check your various privacy settings, safety tips for mobile devices, and a #CyberAware monthly newsletter for families to share online safety news and resources, which you can share with your clients.
Additionally, the Federal Trade Commission has created a webpage that has advice to help small business owners protect not only the networks and systems that are the backbone of their business, but also their customers’ sensitive data. The website also includes videos that show steps small-business owners can take to ensure their businesses have secure networks.

Motivated seller! This darling home has so much curb appeal, newer roof and siding. Large deck off the back with a sliding door to access the backyard. One stall garage with plenty of storage. Well maintained and affordable call today!

Mortgage rates are moving higher, and that has some home shoppers rushing to locking in rates before they edge up even more.
Mortgage applications for refinancings and home purchases increased 4.5 percent last week compared to the previous week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. Loan applications are now 6.1 percent higher than the same week a year ago.

Broken out, applications to purchase a home surged 6 percent during the week and reached their highest level since April 2010, the MBA reports. Loan applications for home purchases are now 7 percent higher than the same week a year ago.
“A combination of being left on the sideline last summer due to a lack of inventory for sale and the prospect of slowly rising interest rates over the near term appears to have buyers in a hurry to start the spring buying season,” says Lynn Fisher, the MBA’s vice president of research and economics.
Mortgage applications to refinance a home increased 1 percent for the week. Typically, refinance applications move lower when interest rates rise, but borrowers are showing some concern for missing an opportunity to refinance at lower rates.
The 30-year fixed-rate mortgage averaged 4.36 percent during the week, its highest average since March, the MBA reports.
“The increases that we’ve seen so far have only gotten people off the couch and into the market,” Glenn Kelman, CEO of Redfin, told CNBC. “People are worrying that they need to hurry and buy a house now before rates go up further.”

Mortgage financing giant Fannie Mae launched a healthy housing reward initiative that offers financial awards to multifamily borrowers who provide services that improve the health and well-being of tenants living in affordable housing. These services could range from day care and food access to youth and education programming and job training.
The program, dubbed Enhanced Resident Services, includes a lower borrowing rate for purchasers who participate. The program is part of Fannie Mae’s Healthy Housing Rewards initiative, which aims to advance sustainable communities and the availability of affordable housing by encouraging multifamily borrowers to improve design features and services that improve residents’ health and stability.
“We believe that the strength of an affordable rental housing property is directly linked to the health and stability of the people and families who live there,” says Bob Simpson, vice president of affordable and green financing at Fannie Mae. “Affordable borrowers have recognized the value of providing enhanced resident services at their properties for years, but have been constrained by the inability to ensure a long-term source of financial support. By participating in our Healthy Housing Rewards program, borrowers will save between $15,000 and $75,000 per year. Amounts saved can be used to offset resident services costs at their property for the life of the loan—thus ensuring that the low-income residents who live there have access to health, education, and other community services.”
For the program, Fannie Mae is teaming up with Stewards for Affordable Housing for the Future, a nonprofit multistate group of affordable housing providers that offers compliance certifications for borrowers and the multifamily affordable housing property.
To qualify for the program, at least 60 percent of the units in multifamily properties seeking the pricing incentive must serve residents earning 60 percent of average median income or less. The program officially started Jan. 15.

Mortgage applications for refinancings and home purchases surged 4.1 percent last week on a seasonally adjusted basis, even as interest rates rose, the Mortgage Bankers Association reported Wednesday. Volume is now up 5.6 percent over a year ago.

More consumers are growing concerned that the long run of record low rates may be coming to an end. As such, they’re rushing to lock in rates before any more upticks.
Applications to purchase a home increased 3 percent last week and are now 7 percent higher than the same week a year ago. Refinance applications rose 4 percent last week. Typically, refinance applications drop when interest rates rise so applications diverted from normal patterns last week.
The MBA reports that the average 30-year fixed-rate mortgage rose last week to 4.33 percent, from 4.23 percent the previous week. Interest rates across the board rose last week, including the 5/1 adjustable-rate mortgage, which rose to its highest level since April 2011.
“Treasury yields moved higher on average last week, based on news that both Japanese and European economic growth is strengthening, along with concern that China may reduce U.S. Treasury holdings in the near future,” explains Joel Kan, an MBA economist. “Despite the increase in rates, applications increased both for purchase and refinance. These increases were partly due to an upswing following the holiday season lull and potentially more borrowers trying to refinance before mortgage rates increase further.”